26 November 2025
Your Super's Legacy: How to Guarantee Your Wishes are Followed
Your superannuation is one of your most valuable assets, but ensuring it goes to the right people requires specific instructions.
The Certainty Factor: Why a Binding Nomination Matters
Unlike the assets in your Will, your superannuation benefit is managed by your super fund's trustee. Without clear direction, the trustee decides who receives the money—a discretionary process that can lead to delays and family stress.
- The Power of Binding: A Binding Beneficiary Nomination removes that discretion. It is a legal directive that compels the trustee to pay your death benefit exactly as you specify.
- The Key Difference: You are proactively securing your legacy, ensuring that your financial plan is executed without question.
Who You Can Nominate (And How to Include Charities)
Superannuation law defines a specific group of people eligible to be a direct binding beneficiary. Nominating an ineligible person will void your entire instruction.
| Eligible Nominees | Important Note |
| Your Spouse (Married or De Facto) | This includes former spouses. |
| Your Children (of any age) | Includes natural, adopted, and stepchildren. |
| Financial Dependants | Anyone who was financially reliant on you at the time of your passing. |
| Interdependency Relationship | A close, personal, mutually supportive relationship. |
| Your Estate (Legal Personal Representative) | Crucial for Flexibility. This allows the funds to be distributed to any person (like a friend, sibling, or distant relative) or charity via the instructions in your Will. |
Preventing the Lapse: Reviewing Your Nomination Date
The most common error clients make is allowing their binding nomination to expire. Many retail funds use a 'lapsing' nomination, which is typically only valid for three years.
- Action Required: If your nomination is "lapsing," you must renew it every three years using the fund's specific form. Missing this deadline means the fund trustee regains control over the decision.
- Seeking Permanence: Some funds offer an Enduring (or Non-Lapsing) Nomination. This type remains valid indefinitely. You can check if your current fund offers this option to provide long-term security.
A Critical Distinction: Your SMSF Trust Deed
If you are a member of a Self-Managed Super Fund (SMSF), the rules for your nomination are dictated by the SMSF Trust Deed.
- SMSF Action Item: It is essential to ensure your SMSF Trust Deed is up-to-date and, if required, allows for a valid, enduring binding nomination. Even a perfectly completed nomination form can be rendered ineffective if the deed is outdated.
Need Help?
Contact us, your financial advisor or your fund, if you have any questions or need assistance with your binding beneficiary nomination.
